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There are more than 320 million Visa® debit cards in the U.S.* - and in 2009, they will represent 59.6% of card-purchase transactions**. With numbers like these, you are almost certain to have customers paying with debit cards.
First National Merchant Solutions is often asked by business owners, "Is debit card acceptance right for my business?" For most businesses, the answer is definitely yes! Although debit card processing and the benefits it offers can be complex, First National is able to make it easy and beneficial by offering ATM debit acceptance packages through a variety of regional and national networks.
On-line debit cards, also known as ATM debit cards, allow your customers to use an ATM card when purchasing products and services. When a customer uses an ATM debit card, the funds are taken directly from their checking account. This form of payment acceptance requires the ATM cardholder to key their Personal Identification Number (PIN) into a PIN Pad. No signature is required, and transactions are typically less expensive to process. The current rate is pennies per transaction, no matter what the dollar amount of the sale.
Off-line debit cards, otherwise known as check cards, are similar to an ATM debit cards in that the funds are also taken from the cardholder's checking account. One key difference between check cards and ATM debit cards are card association logos: a check card bears a Visa or MasterCard® logo on the front of the card, similar to a regular credit card. This form of payment does not require the customer to key in a PIN. In some cases, a check card may be processed as an ATM debit card transaction at a lower cost to the merchant. Merchants currently accepting Visa and MasterCard as a form of payment are able to accept check cards.
Although ATM debit cards and check cards are both connected to a checking account, the fees for accepting each of them differ. Merchants who accept check card transactions are assessed a percentage of the sale amount just as they are with regular Visa or MasterCard credit transaction. When an ATM debit card transaction is accepted at the point of sale, the merchant is charged a per-item transaction fee. This can result in a large savings back to the merchant.
First National offers much more than traditional Visa and MasterCard transaction processing. We also offer a full line of value-added services geared towards enhancing your bottom line. For more information on how your business can benefit with ATM debit card acceptance, please call First National Merchant Solutions at 888-679-0240 or contact us.
*Source: The Nilson Report July 2008 Issue 906
**Source: The Nilson Report November 2008 Issue 914
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